Customs, Excise and Gold Tribunal - Tamil Nadu
Cce vs Tvs Electronics Ltd. on 30 June, 2005
Equivalent citations: 2005(102)ECC431
ORDER P.G. Chacko, Member (J)
1. The respondents had taken Modvat credit of CVD paid on certain inputs received from 100% EOU. Both the lower authorities approved this action of the assessee. The Department is aggrieved, contending that the credit availed by the assessee was far in excess of what they were entitled to in terms of Notification No. 5/94-CE dated 1.3.94. Learned SDR reiterates this contention. Learned Consultant for the respondents opposes, by submitting that the credit was correctly taken in terms of the above Notification as interpreted by the Tribunal in Vikram Ispat v. CCE, Mumbai, 2000 (120) ELT 800 (Tri.-LB) followed by the Chennai Bench of the Tribunal in the case of India Japan Lighting Ltd. v. CCE, Channai, 2004 (97) ECC 378 (Tri).
2. After considering the submissions, I find that the lower appellate authority has rightly followed the Tribunal's Larger Bench decision in Vikram Ispat (supra). The appellant has submitted that the department has filed reference application in the High Court against the Larger Bench decision. Apparently, there is no stay of operation of the said decision. In the circumstances, I upheld the impugned order after noting that it is strictly in accordance with the parameters (for calculation of Modvat credit admissible to manufacturer receiving inputs from 100% EOU) laid down by the Larger Bench.
3. In the result, the Revenue's appeal is dismissed.